Corbett Signs 2011-12 Budget Agreement into Law

It was down to the wire late Thursday night for the governor to approve the $27.149 billion state budget agreement delivered to him by the legislature, but – true to his campaign promise – the General Fund spending plan was signed before the July 1^st Constitutional deadline. This spending figure represents an approximate three percent decrease from 2010-11 levels, with no new or increased taxes.

 

Of course, as with most budgets, there are those who cry victory, and those who cry foul. During the final hours of debate, perhaps one of the most vocal of the latter were the members of the House and Senate Democratic caucuses, with legislators in both chambers rising to complain that their party and its priorities were largely, if not entirely, ignored during budget negotiations. Another chief point of contention raised by the party is the currently higher-than-anticipated state revenue collections, which should reach nearly $700 million, according to Democrats' projections. The party called on these funds to be included in the 2011-12 budget to help restore cuts to education and social services, among other state programs benefitting low- and middle-income Pennsylvanians. Republican leaders, on the other hand, argued the importance of maintaining a tight rein on spending, holding on to any surpluses to help minimize cuts in future budgets.

 

On the topic of education funding, much of the early debate centered around cuts to state-owned and state-related universities. State-related universities – Penn State, Temple and Lincoln Universities, as well as the University of Pittsburgh – will see a 19 percent ($130 million) decrease in funds; whereas the fourteen universities in the State System of Higher Education will see an 18 percent ($90 million) drop in state funding.

 

Obviously absent from this year’s budget is a tax on the Marcellus Shale natural gas industry. The counter-proposal of implementing a local impact fee, one of which is sponsored by Senate Pro Tem Joe Scarnati (R-Jefferson), was also tabled until the fall. This occurred after the governor announced that he would veto the budget bill were it to include such a clause, insisting that the debate wait until after the July release of his Marcellus Shale Commission’s study.

 

Readers may recall the verbal agreement that was brought forth by last year’s budget talks to create an Independent Fiscal Office to act as a nonpartisan source of budget information and state spending, equally accessible to all parties. This measure, proposed by now-Senate Majority Whip Pat Browne (R-Lehigh) and Rep. Jim Christiana (R-Beaver) in the House, was finally amended into the omnibus 2011-12 legislation.

 

As has been typical thus far in the 2011-12 session, the vote to pass the budget bill and ancillary Welfare Code, Fiscal Code, and School Code bills, all fell largely along party lines.